DOJ Offers More Incentives to Self-Report Wrongdoing in M&A Transactions

The DOJ recently announced a new policy stating that if a company acquiring another company discloses potential wrongdoing, and fixes the problems within six months of the acquisition, it won’t be prosecuted. Justice Department divisions can modify this policy based on specific timing and circumstances with the transaction. However, it does not give leeway to misconduct related to national security or ongoing or imminent harm. This policy emphasizes the importance of teamwork and due diligence for merging companies.

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